Why are rates so much higher on a second or Investment home

Didier Malagies • May 8, 2023


There could be a variety of reasons why the government might choose to curtail mortgages on second and investment homes. One potential reason is to reduce the risk of a housing market bubble and subsequent financial crisis. By limiting access to credit for speculative real estate investments, the government can help ensure that housing prices are more closely tied to underlying economic fundamentals rather than being driven up by speculation.

Another reason could be to address concerns about wealth inequality. If a significant portion of the population is able to invest in multiple homes as a means of accumulating wealth, this can contribute to a concentration of wealth and exacerbate existing inequalities. By curbing access to mortgages for second and investment homes, the government can potentially promote more equitable distribution of resources.

It's also possible that the government is concerned about the impact of speculative real estate investments on rental markets. If investors are able to purchase multiple properties with the intention of renting them out, this can lead to rising rents and reduced affordability for tenants. By limiting access to credit for these types of investments, the government can help promote more stable and affordable rental markets.

Ultimately, the specific reasons why the government might choose to curtail mortgages on second and investment homes will depend on a range of economic, social, and political factors, and may vary from one country or jurisdiction to another.

Didier Malagies nmls#212566

DDA Mortgage nmls#324329

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By Didier Malagies November 28, 2025
 New conforming loan limits increase to $832,750, which is great considering we have had price decreases on homes this year. So if you put down 3% the purchase price would be $858,051, and 5% down would be $876,578. Why would that matter? Well, you go above, and you are in Jumbo territory, where you have to put 20% down vs the 3% or 5% down. So, really great news that there is an increase, and when rates do come down, there will be all the homeowners who have the low interest rates, probably make a move to either downsize or upsize on their home, which will create activity and an increase in home prices. So overall, exciting to see the loan amounts increase to help offset the higher home prices tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329
By Didier Malagies November 24, 2025
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